The app economy in Asia Pacific is growing more rapidly than it ever has, a new study by app market data company App Annie has found.
Growth in the past two years has been led by a boom in video streaming apps, and this is due to the fact that more traditional broadcasters are shifting their services online.
The popularity of video streaming apps helped APAC surpass the Americas as the highest grossing region in entertainment categories across Apple’s App Store and Google Play in the first half of 2017.
Revenue in APAC from Entertainment category apps across both app stores also more than quadrupled since H1 2015.
Jaede Tan, regional director at App Annie said: “With today’s user demanding more flexibility, there has been a decline in popularity of traditional broadcast, heralding a boom in video streaming apps, especially those available on mobile, such as Amazon and Netflix.
“Asian users are also more willing than ever to spend within mobile apps, and this advent of video streaming apps has brought about a tremendous potential for monetization of apps in the Asian region, especially for video content providers.”
The report also shows that long-form videos by international platforms such as Netflix are key drivers for video streaming apps in the region.
Revenue from in-app purchases of video streaming apps in APAC also grew, especially in China, where total value from top five video streaming apps in H1 2017 was ten times greater than in Japan.
With Asian users’ high propensity to spend, revenue from the top five video streaming apps in the region doubled year-on-year.
In Southeast Asia, the combined revenue of top five streaming apps grew over 200% year-on-year from 2015 to 2017. This chart shows that Netflix is winning the game in four out of seven regional countries studied:
From 2015 to 2017, video consumption by users in APAC markets tripled, reaching 40 billion hours.
The time spent for users in the region also accounted for almost half of the worldwide total, with emerging markets taking the lead.
And if you thought this would be the peak of its growth, you’re wrong. App Annie said in its report that the total time spent in mobile apps will surpass 3.5 trillion hours in 2021.